• Source:JND
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In today's global economy, indebtedness is a critical indicator of a country’s economic health and stability. From advanced economies with substantial debt burdens to developing nations struggling with debt management, check out the list of countries at the forefront of the debt crisis.

World Statistics has compiled a list of the world's most indebted countries based on an IMF report. The ranking, based on the ratio of debt to GDP, has been prepared using data from the year 2022.

This article delves into the countries deemed as the most indebted by the IMF and their debt-to-GDP ratios.

Japan

Japan has a debt amounting to 263 per cent of its GDP, making it the most in debt to the IMF. As of March 2023, Japan's public debt was estimated at around USD 9.2 trillion, which represents 263 per cent of its GDP. This makes it one of the highest debt levels among developed countries. The Bank of Japan holds 43.3 per cent of this debt.

Greece

Greece has a loan of 203 per cent of its national GDP. In 2018, the country exited its final bailout program, reduced taxes, and elected a new Prime Minister who promised to reward the country's citizens, investors and businesses. 

United Kingdom

At the end of June 2024, government debt was equivalent to 147 per cent of its GDP. In 2023, the IMF projected a 0.3 per cent contraction in the UK's GDP for the coming year, making it the weakest performer among wealthy economies. By February 2023, the UK's inflation rate was 10.4 per cent, surpassing that of both the European Union and the United States.

Lebanon

According to the IMF, Lebanon's debt is 128 per cent of its national GDP. The substantial costs of Lebanon's post-war reconstruction were a major factor leading to the current financial issues. The benefits were largely concentrated among the wealthy and mainly centered around upscale property developments in the capital, Beirut.

Spain

The IMF officially reported that Spain holds a debt of 111 per cent of its national GDP. Spain's economy, the fourth largest in the eurozone, grew by 2.5 per cent in 2023, slightly exceeding the government's forecast of 2.4 per cent growth. This expansion was supported by a record-breaking influx of over 84 million foreign visitors.

United States

The United States has a debt of 110 per cent of its national GDP. For fiscal year 2023, the average GDP was $26.97 trillion, which was lower than the US debt of USD 33.17 trillion (3,317,000 crore). This resulted in a debt-to-GDP ratio of 123 per cent. Typically, a higher debt-to-GDP ratio suggests that a government may face greater challenges in repaying its debt. A US default could potentially trigger a severe recession, disrupt the global economy, and lead to a rise in unemployment.

India 

India currently has a debt that is 46 per cent of its GDP and is the fastest-growing country in the world. As of the end of March 2024, India's external debt totals USD 663.8 billion (66,380 crore), marking an increase of USD 39.7 billion (3,970 crore) from the previous year.